Gland Pharma IPO

Apply 0
Avoid 0

(i) They one of the fastest-growing generic injectables-focused companies by revenue in the United States from 2014 to 2019 (Source: IQVIA Report). They are present in sterile injectables, oncology, and ophthalmics, and focus on complex injectables, NCE-1s, First-to-File products, and 505(b)(2) filings. Gland Pharma is typically a B2B company.

Generic injectables are bio-equivalent of their branded counterparts which are not protected by drug patents. They are as safe and effective as the innovator drugs since they have similar active ingredients, dosage, strength, quality, form, etc.

(ii) They sell their products primarily under a business to business (“B2B”) model in over 60 countries as of March 31, 2020, including the United States, Europe, Canada, Australia, India, and the Rest of the world.

(iii) Gland Pharma was established in Hyderabad, India in 1978 and has expanded from liquid parenterals to cover other elements of the injectables value chain, including contract development, own development, dossier preparation, and filing, technology transfer, and manufacturing across a range of delivery systems.

(iv) They have a professional management team and one of the Promoters, Shanghai Fosun Pharma, is a global pharmaceutical major.

(v) Gland Pharma has seven manufacturing facilities in India, comprising four finished formulations facilities with a total of 22 production lines and three API facilities. As of March 31, 2020, they have manufacturing capacity for finished formulations of approximately 755 million units per annum.

(vi) As of March 31, 2020, Gland Pharma along with its partners had 265 ANDA filings in the United States, of which 204 were approved and 61 were pending approval. The 265 ANDA filings comprise 189 ANDA filings for sterile injectables, 50 for oncology and 26 for ophthalmics related products.

ANDA– An abbreviated new drug application (ANDA) contains data that is submitted to the FDA for the review and potential approval of a generic drug product.

Revenue Contributions Country-wise

Countries FY18 FY19 FY20
USA 71.25% 62.50% 66.74%
India 18.49% 18.97% 17.74%
Europe 3.39% 5.38% 4.44%
Canada 1.08% 1.12% 1.78%
Australia 0.69% 0.44% 0.50%
Rest of the world 5.10% 11.59% 8.80%

Objects of the Gland Pharma IPO:

(i) Offer for Sale The proceeds of the Offer for Sale shall be received by the Selling Shareholders. (ii) Fresh Issue The Company proposes to utilize the Net Proceeds towards the funding of the following objects: 1. Funding incremental working capital requirements. 2. Funding capital expenditure requirements. 3. General corporate purposes.

Gland Pharma IPO Details:

Listing At: NSE,BSE

Promoters And Management:

(i) Yiu Kwan Stanley Lau is the Chairman and Independent Director of our Company. He holds a bachelor’s degree in pharmacy from The School of Pharmacy, University of London. He is a director on the board of directors Solasia Pharma K. K. and TaiLai Bioscience Ltd. (ii) Srinivas Sadu is the MD and CEO of our Company. He holds a bachelor’s degree in pharmacy from Gulbarga University, a master’s degree in science from Long Island University, New York, and a master’s degree in business administration from University of Baltimore. He also holds a post-graduate certificate in finance and management from the London School of Business and Finance. He has previously worked at Natco Pharma Limited at Hyderabad, India, and is presently a director on the board of Sadu Advisory Services Private Limited. He has over 21 years of experience in business operations and management.

Financials of Gland Pharma IPO:

Particulars (Cr) FY18 FY19 FY20
Revenue 1622 2044 2633
EBITDA 584 792 1094
PAT 321 451 772

Comparison With Peers:

to be updated shortly

Recommendation on Gland Pharma IPO:

to be updated shortly

Registrar of Gland Pharma IPO:

  1. Link Intime India Private Limited

Discussion on Gland Pharma IPO:

    Fosun Singapore holds 74% in the Gland Pharma pre-IPO.

    One of the promoters in Gland Pharma is Shanghai Fosun Pharmaceutical Co., Ltd., known as Fosun Pharmaceutical or just Fosun Pharma is a Chinese listed pharmaceutical company. It is majority-owned by Fosun International.

    Balance Sheet Analysis:

    1. No equity has been diluted in the last 3 years. Very Positive sign.

    2. Net-Worth as on 31.03.2020= 3646 Crores

    3. Debt as on 31.03.2020 = 4.9 Crores

    4. Debt/Equity = Negligible ( Debt Free Company)

    5. Current Ratio (FY20) = 7.92

    The company has an excellent Current Ratio. Anything above 2 is great for the business. This means the company will not have any liquidity issues in the short term.

    6. Receivables Days = 79 days for FY20. Anything less than 90 is good.

    7. ROE = 21% – Excellent

    Conclusion- The company has very strong balance sheet.